OPGS Power Gujarat Private Ltd (OPGPL), a company promoted by OPG Energy Pvt Ltd, is facing problem as the Fuel Supply Agreement has not yet been signed and lenders have refused to disburse any further financing to the project unless the FSA is signed.
The lenders, a consortium led by Rural Electrification Corporation and other members including the Punjab National Bank and the State Bank of Hyderabad, have stopped lending money on the ground that the LOA could not be converted to an FSA within two years.
OPGPL was supposed to sign the FSA with South Eastern Coalfields Ltd before December 30, 2013. However, SECL has not signed the FSA till date seeking some clarifications. In the mean time OPGPL has sought the intervention of the Project Monitoring Group (PMG) of the Cabinet Secretariat to expedite the grant of FSA. Accordingly, the matter was once again discussed in the Coal Sub-group meeting of the PMG on April 9, 2014 after being taken up in the PMG meeting on March 19, 2014. OPGPL has also approached the Cabinet Secretariat to direct the lenders of consortium to continue disbursement of funds irrespective of the execution of FSA to avoid any delay in commissioning of the project.